REVENUES

The Company generates revenue from several sources, as follows:


•	The primary source of revenue in the iHM segment is the sale of advertising on the Company’s broadcast radio stations, its iHeartRadio mobile application and website, station websites, and national and local live events. This segment also generates revenues from traffic and weather data, programming talent, network compensation, and other miscellaneous transactions.


•	The Americas outdoor and International outdoor segments generate revenue primarily from the sale of advertising space on printed and digital displays, including billboards, street furniture displays, transit displays and retail displays.


•	The Company also generates revenue through contractual commissions realized from the sale of national spot and online advertising for clients of its full-service media representation business, Katz Media, which is reported in the Company’s Other segment.

Certain of the revenue transactions in the Americas outdoor and International outdoor segments are considered leases, for accounting purposes, as the agreements convey to customers the right to use the Company’s advertising structures for a stated period of time. In order for a transaction with a customer to qualify as a lease, the arrangement must be dependent on the use of a specified advertising structure, and the customer must have almost exclusive use of that structure during the term of the arrangement. Therefore, arrangements that do not involve the use of an advertising structure, where the Company can substitute the advertising structure that is used to display the customer’s advertisement, or where the advertising structure displays advertisements for multiple customers throughout the day are not leases. The Company accounts for revenue from leases, which are all classified as operating leases, in accordance with the lease accounting guidance (Topic 840). All of the Company’s revenue transactions that do not qualify as a lease are accounted for as revenue from contracts with customers (Topic 606).

Disaggregation of Revenue

The following table shows, by segment, revenue from contracts with customers disaggregated by geographical region, revenue from leases and total revenue for the three and six months ended June 30, 2018 and 2017:



(In thousands)	iHM			Americas Outdoor⁽¹⁾		International Outdoor⁽¹⁾		Other		Eliminations			Consolidated
Three Months Ended June 30, 2018
Revenue from contracts with customers:
United States	$	849,553		$	115,488	$	—	$	38,497	$	(1,125	)	$	1,002,413
Other Americas	98			634		17,864		—		—			18,596
Europe	2,468			—		225,538		—		—			228,006
Asia-Pacific and other	4,002			—		5,643		—		—			9,645
Eliminations	(3,473		)	—		71		—		—			(3,402		)
Total	852,648			116,122		249,116		38,497		(1,125		)	1,255,258
Revenue from leases	619			183,800		162,942		—		(1,777		)	345,584
Revenue, total	$	853,267		$	299,922	$	412,058	$	38,497	$	(2,902	)	$	1,600,842

Three Months Ended June 30, 2017
Revenue from contracts with customers:
United States	$	879,862		$	108,520	$	—	$	35,609	$	(867	)	$	1,023,124
Other Americas	426			4,260		19,165		—		—			23,851
Europe	2,395			—		198,313		—		—			200,708
Asia-Pacific and other	4,152			406		4,825		—		—			9,383
Eliminations	(3,651		)	—		40		—		—			(3,611		)
Total	883,184			113,186		222,343		35,609		(867		)	1,253,455
Revenue from leases	1,196			187,005		149,785		—		(1,073		)	336,913
Revenue, total	$	884,380		$	300,191	$	372,128	$	35,609	$	(1,940	)	$	1,590,368

Six Months Ended June 30, 2018
Revenue from contracts with customers:
United States	$	1,589,998		$	211,635	$	—	$	66,715	$	(1,438	)	$	1,866,910
Other Americas	176			1,284		34,656		—		—			36,116
Europe	5,062			—		413,919		—		—			418,981
Asia-Pacific and other	8,252			—		12,151		—		—			20,403
Eliminations	(7,153		)	—		—		—		—			(7,153		)
Total	1,596,335			212,919		460,726		66,715		(1,438		)	2,335,257
Revenue from leases	1,500			342,850		294,196		—		(3,000		)	635,546
Revenue, total	$	1,597,835		$	555,769	$	754,922	$	66,715	$	(4,438	)	$	2,970,803

Six Months Ended June 30, 2017
Revenue from contracts with customers:
United States	$	1,633,194		$	202,182	$	—	$	64,880	$	(1,437	)	$	1,898,819
Other Americas	852			7,791		32,622		—		—			41,265
Europe	4,405			—		352,917		—		—			357,322
Asia-Pacific and other	7,957			406		10,281		—		—			18,644
Eliminations	(7,322		)	—		—		—		—			(7,322		)
Total	1,639,086			210,379		395,820		64,880		(1,437		)	2,308,728
Revenue from leases	2,467			350,158		260,688		—		(2,351		)	610,962
Revenue, total	$	1,641,553		$	560,537	$	656,508	$	64,880	$	(3,788	)	$	2,919,690

⁽¹⁾ Due to a re-evaluation of the Company’s internal segment reporting in 2018, its operations in Latin America are included in the International outdoor segment results for all periods presented. See Note 1, Basis of Presentation.

All of the Company’s advertising structures are used to generate revenue. Such revenue may be classified as revenue from contracts with customers or revenue from leases depending on the terms of the contract, as previously described.

Revenue from Contracts with Customers

The following tables present the changes in the Company’s contract balances from contracts with customers for the three and six months ended June 30, 2018 and 2017 and provide a reconciliation of the ending balances to the Consolidated Balance Sheets:



	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2018			2017			2018			2017
Accounts receivable from contracts with customers:
Beginning balance, net of allowance	$	1,041,173		$	955,504		$	1,200,050		$	1,071,418
Additions (collections), net	73,497			160,063			(77,920		)	49,687
Bad debt, net of recoveries	(6,752		)	(4,923		)	(14,212		)	(10,461		)
Ending balance, net of allowance	1,107,918			1,110,644			1,107,918			1,110,644
Accounts receivable from leases, net of allowance	311,121			312,936			311,121			312,936
Total accounts receivable, net of allowance	$	1,419,039		$	1,423,580		$	1,419,039		$	1,423,580

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2018			2017			2018			2017
Deferred income from contracts with customers:
Beginning balance	$	324,185		$	325,950		$	297,686		$	313,545
Revenue recognized, included in beginning balance	(99,376		)	(119,023		)	(155,379		)	(142,960		)
Additions, net of revenue recognized during period	92,489			118,657			174,991			154,999
Ending balance	317,298			325,584			317,298			325,584
Deferred income from leases	59,814			61,937			59,814			61,937
Total deferred income	377,112			387,521			377,112			387,521
Less: Non-current portion, included in other long-term liabilities	140,294			154,315			140,294			154,315
Total deferred income, current portion	$	236,818		$	233,206		$	236,818		$	233,206

The Company’s contracts with customers generally have a term of one year or less; however, as of June 30, 2018, the Company expects to recognize $235.9 million of revenue in future periods for remaining performance obligations from current contracts with customers that have an original expected duration of greater than one year, with substantially all of this amount to be recognized over the next five years. Commissions related to the Company’s media representation businesses have been excluded from this amount as they are contingent upon future sales. As part of the transition to the new revenue standard, the Company is not required to disclose information about remaining performance obligations for periods prior to the date of initial application.

Revenue from Leases

As of December 31, 2017, the Company’s future minimum rentals under non-cancelable operating leases were as follows:



(In thousands)
2018	$	278,957
2019	37,024
2020	19,103
2021	13,683
2022	9,628
Thereafter	18,836
Total minimum future rentals	$	377,231